CC 12-03-2024 Item No. 9. LED Streetlights Installation Project_Desk Item
CITY COUNCIL STAFF REPORT
DESK ITEM
Meeting: December 3, 2024
Agenda Item #9
Subject
Award a construction contract for the Light Emitting Diode (LED) Streetlight
Installation Project to Bear Electrical Solutions in the amount of $628,449 and approve
a third amendment to the construction management agreement with Tanko Lighting
for a total contract amount not to exceed $306,914.
Recommended Action
1. Award a construction contract for the LED Streetlight Installation Project (budget
unit 420‐99‐258, project number 2022‐13) in the amount of $629,449 to Bear
Electrical Solutions.
2. Authorize the City Manager to execute the construction contract when all
conditions have been met.
3. Authorize the Director of Public Works to execute any necessary change orders
up to a construction contingency amount of $62,945 (10%), for a total contract
amount of $692,394.
4. Authorize the third amendment to an agreement with Tanko Lighting for
Construction Management and Consulting Services on various Capital
Improvement Programs (CIP) Projects, by increasing the contract amount by
$156,914, for a total contract amount not to exceed $306,914.
Background:
Q1: The staff report states that the contract amount is $629,449 with 10%
contingency. But ʺTo ensure that construction work is completed in an orderly
manner and in compliance with the project specifications ... increasing Tanko
Lightings contract by $156,914 ... so that Tanko Lighting can perform
construction management services for the City on this project.ʺ Thus, the
management services costs 25% in addition to the cost of the project.
As a reference, Google search shows ʺA typical construction management
service fee usually falls between 5% and 15% of the total project cost, with
smaller projects often having a higher percentage due to the increased
management overhead involved,ʺ which may not be applicable to city project
of course.
(Chao)
Staff response: This project is on the medium to smaller side of projects, which means
that Construction Management (CM) services will typically be a higher percentage of
the project total. This project is anticipated to take 4 months, and the CM team will
also be performing services beyond the typical CM scope. This additional scope will
include managing and updating data for the City’s Geographic Information System
(GIS) to ensure our asset data is correct upon project completion. Additionally, the
CM will be coordinating with PG&E to ensure that all asset billing for the City is
correct for the City to attain the energy and cost savings envisioned with the project.
The total project cost for this project (which includes design) is approximately
$960,000. The cost of the CM services for this project is just over 16% of the total
project cost.
Q1‐1: 25% seems to be a much higher percentage for construction
management services. What justifies the higher percentage? Or is it a normal
amount?
(Chao)
Staff response: For a project of this size and the scope of CM services, the percentage is
reasonable.
Q1‐2: What other projects also have separate construction management
services? Could you provide examples, and the council meeting dates for
reference? Or are these usually done in house? (Chao)
Staff response:
Project
Contract
Approval
Date
Total Project
Cost
Percentage of
CM Services
LED Streetlight
Transition Project N/A $960,000 16%+/‐
Regnart Road
Improvements Ph 1 7/6/2023 $1,907,410 10%+/‐
McClellan Road Bike
Lanes Ph 3 10/10/2023 $2,135,388 9%+/‐
Regnart Creek Trail &
Fence Project
6/1/2021 $4,221,085 14%+/‐
Q2: Some of the LED streetlights seem overly bright, especially white light.
Some streetlights do not only face down to the street. The light spills outwards
often to the second floor windows of nearby residences. Would there be
options to dim the lights or reduce the light spills? (Chao)
Staff response: LED lighting has better options for adapting to unique scenarios. They
are capable of being dimmed, as well as being better at limiting “spill over” than are
the City’s existing incandescent fixtures. The LED fixtures that were selected
minimize back lighting and spill over into adjacent properties and have color
temperatures that comply with the City’s dark sky ordinance.
Attachments Provided with Original Staff Report:
A. Draft Contract
B. Draft Amended Agreement Tanko Lighting